The major coins fell in synchronized fashion yet again an hour ago, just after the market recovered at least some of the ICO-ban losses. The move was triggered by another Chinese regulatory crackdown this time on the crypto-exchanges that threatens (Chinese source: Caixin) with the closure of local exchanges. While the segment was already ripe for a major correction according to the long-term technical setup, the double legislative blow from China fast-forwarded the market, and the likes of Ethereum, NEO, Bitcoin, and Litecoin fell by double digits in a matter of minutes, with the rest of the sector also heading south.
ETH Crashing After The Release
Volatile conditions are likely to persist, as the crackdown on exchanges could have ripple effects throughout the market, and coupled with the technical vulnerability, major support levels could fall triggering stop-losses and another wave of selling. That said, the exact details of the new rules are unknown and the initial reaction of the market might be exaggerated.
NEO Dump and Pump
NEO was once again in the epicenter of the move, falling by 30% before recovering a large chunk of the decline, and the moves in the deeply involved token could be good to assess the damage int he coming days. What seems certain, is that cryptocurrency traders are in for yet another busy weekend.
Featured Image from Shutterstock